Reserving for severe bodily injury
This publication focuses on the complex, multidisciplinary problem of setting aside reserves for severe bodily injury claims.
It is intended as a practical aid to reserving practice. Determining the appropriate amount to be reserved for outstanding severe bodily injury claims is a difficult task.
Though it may take decades to reach a final settlement, the insurer must make his first assessment soon after the injury. Even this initial estimate should take economic information and empirical loss experience into account, in addition to medical and legal aspects. Yet despite every effort to formalise this process, reserving for bodily injury will remain an inexact science due to the unpredictable way in which claims often develop. How can an insurer make the best of this uncertain situation?
